Have you been paying attention to shares of Vimeo, Inc. (VMEO) ? Shares have been on the move with the stock up 39.5% over the past month. The stock hit a new 52-week high of $7.18 in the previous session. Vimeo, Inc. has gained 71.9% since the start of the year compared to the 24.6% move for the Zacks Business Services sector and the 44.5% return for the Zacks Technology Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our ...

Core Insights - Vimeo, Inc. reported better-than-expected third-quarter financial results and provided fourth-quarter sales guidance above market estimates [1][2] Financial Performance - Quarterly earnings were reported at 5 cents per share, surpassing the analyst consensus estimate of 1 cent per share [2] - Quarterly sales reached $104.564 million, exceeding the analyst consensus estimate of $99.605 million [2] Future Guidance - For the fourth quarter, Vimeo anticipates sales of $100 million, compared to market estimates of $97.14 million [2] Stock Performance - Following the earnings announcement, Vimeo shares increased by 44.7%, trading at $6.96 [2] Analyst Ratings and Price Targets - Truist Securities analyst Youssef Squali maintained a Buy rating and raised the price target from $7 to $9 [2] - Piper Sandler analyst Thomas Champion reiterated a Neutral rating and increased the price target from $5 to $7 [2] - TD Cowen analyst John Blackledge maintained a Hold rating and raised the price target from $6 to $7 [2]

Market Performance - U.S. stocks traded higher, with the Dow Jones index gaining over 350 points, up 0.86% to 42,154.69, NASDAQ rose 1.25% to 18,407.20, and S&P 500 increased by 1.01% to 5,770.63 [1] - Consumer discretionary shares surged by 1.7%, while energy shares rose by only 0.3% [1] Trade Deficit - The U.S. trade deficit increased to $84.4 billion in September, the highest level since April 2022, exceeding market estimates of an $84.1 billion gap, compared to a revised $70.8 billion gap in August [2][6] Notable Stock Movements - Bionomics Limited (BNOX) shares surged 156% to $0.49 after securing an AUS$1 million milestone payment, with potential earnings of up to AUS$118 million [2] - Vimeo Inc (VMEO) shares rose 45% to $6.95 following better-than-expected Q3 results and optimistic Q4 sales guidance [2] - ZyVersa Therapeutics, Inc. (ZVSA) shares increased by 33% to $2.41 due to promising data on inflammasome inhibition [2] Declining Stocks - Marqeta, Inc. (MQ) shares dropped 41% to $3.52 after disappointing Q3 sales results and multiple downgrades [3] - Verrica Pharmaceuticals Inc. (VRCA) shares fell 40% to $0.86 following poor quarterly results [3] - Bioventus Inc. (BVS) shares decreased by 20% to $10.97 after announcing Q3 results [3] Commodity Prices - Oil traded up 0.5% to $71.83, gold up 0.2% to $2,750.40, silver up 0.5% to $32.775, and copper rose 0.9% to $4.4720 [4] European Market Performance - European shares were mostly higher, with the eurozone's STOXX 600 up 0.06%, Germany's DAX gaining 0.57%, and France's CAC 40 rising 0.48% [4] - Spain's consumer confidence indicator declined by 4.6 points to a reading of 84.8 in September [4] Asian Market Performance - Asian markets closed higher, with Japan's Nikkei 225 gaining 1.11%, Hong Kong's Hang Seng Index up 2.14%, China's Shanghai Composite Index up 2.32%, and India's BSE Sensex gaining 0.88% [5]

Core Viewpoint - Vimeo's stock surged 42% following the release of its Q3 2024 financial results, reaching its highest price in over two years, despite a slight decline in revenue [1]. Financial Performance - In Q3, Vimeo's revenue decreased by almost 2% year over year, while the gross margin remained stable at 79%. The net income increased to $9 million from $8 million in the previous year [2]. - The company has successfully cut expenses, leading to record highs in earnings per share (EPS) and free cash flow [3]. Growth Potential - Although overall revenue is down, Vimeo's enterprise product is experiencing significant growth, with bookings for the enterprise platform increasing by 39% in Q3, now representing 25% of total bookings [4]. - The stock was previously undervalued, trading at two times its sales and about 16 times its free cash flow, which may have been justified for a declining business. However, if the enterprise-video platform continues to grow, the current valuation could be considered cheap [5]. Future Outlook - The key factor for Vimeo's future success is its ability to profitably scale its enterprise platform, which could lead to further stock price appreciation [6].

So far, the Q3 earnings season has continued to prove itself to be quite the opportune time for small and mid-cap rebound plays. Investors have sent shares of these turnaround stocks up double-digits on just the slightest whiff of good news, relatively unfazedWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He h ...

Core Insights - Vimeo, Inc. reported $104.56 million in revenue for Q3 2024, a year-over-year decline of 1.6%, but exceeded the Zacks Consensus Estimate of $99.48 million by 5.11% [1] - The company achieved an EPS of $0.05, matching the EPS from the same period last year, with a significant surprise of 400% compared to the consensus estimate of $0.01 [1] Revenue Metrics - ARPU for Self-Serve & Add-Ons was $209, surpassing the average estimate of $203.40 [3] - ARPU for Other was $1,082, exceeding the average estimate of $1,006.04 [3] - ARPU for Vimeo Enterprise reached $23,043, above the average estimate of $21,174.44 [3] - Revenue from Other was $15.03 million, compared to the average estimate of $13.09 million, reflecting a year-over-year decline of 21.3% [3] - Revenue from Vimeo Enterprise was $21.68 million, exceeding the average estimate of $20.31 million, with a year-over-year increase of 42.4% [3] - Revenue from Self-Serve & Add-Ons was $67.86 million, slightly above the average estimate of $65.99 million, representing a year-over-year decline of 5.7% [3] Stock Performance - Vimeo's shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has increased by 0.4% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Table of Contents As filed with the Securities and Exchange Commission on November 5, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________to__________ Commission File No. 001-40420 rimeo VIMEO, INC. (Exa ...

NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Vimeo posted its third quarter 2024 shareholder letter on the investor relations section of its website at https://www.vimeo.com/investors. About VimeoVimeo (NASDAQ: VMEO) is the world's most innovative video experience platform. We enable anyone to create high-quality video experiences to better connect and bring ideas to life. We proudly serve our community of millions of users – from creative storytellers to globally distributed teams at the world's largest com ...

Revenue and Financial Performance - Vimeo generated $105 million in revenue in Q3, with Vimeo Enterprise growing revenue by 42% and reaching $100 million in annualized bookings[3] - Vimeo's total bookings were $100 million, with a gross margin of 79%, net income of $9 million, and Adjusted EBITDA of $16 million[8] - Vimeo's Adjusted EBITDA margin was 15%, with net income increasing by $1 million year-over-year to $9 million[26] - Q3 2024 revenue was $104.564 million, a slight decrease from $106.253 million in Q3 2023[29] - Q3 2024 net earnings were $9.282 million, up from $8.464 million in Q3 2023[29] - Total revenue for Q3 2024 was $104.6 million, a slight decrease from $106.3 million in Q3 2023[32] - Adjusted EBITDA for Q3 2024 was $16.1 million, with a margin of 15%, up from $12.8 million and 12% margin in Q3 2023[34] - Free Cash Flow for Q3 2024 was $21.0 million, an increase from $16.6 million in Q3 2023[34] - Non-GAAP Gross Margin remained stable at 79% in Q3 2024, consistent with Q3 2023[33] - Adjusted EBITDA outlook for Q4 2024 is projected at $10.0 million[35] Vimeo Enterprise Performance - Vimeo Enterprise bookings grew 39% to $25 million, representing 25% of total bookings, with subscribers increasing by 26% and ARPU up 11% year-over-year[12] - Vimeo Enterprise serves the eight largest big-box retailers, top ten quick-service restaurants, and seven of the top eight financial services companies[5] - Vimeo Enterprise revenue grew significantly to $21.7 million in Q3 2024, up from $15.2 million in Q3 2023[32] - Vimeo Enterprise ARPU increased to $23,043 in Q3 2024, up from $20,848 in Q3 2023[32] - Vimeo Enterprise offers advanced features like security, custom permissions, and marketing integrations, often serving as an upgrade from Self-Serve & Add-Ons[47] Self-Serve & Add-Ons Performance - Vimeo's Self-Serve & Add-Ons bookings declined 8%, with revenue down 6% and subscribers falling 9%, partially offset by a 4% increase in ARPU[16] - Self-Serve & Add-Ons ARPU increased to $209 in Q3 2024, compared to $202 in Q3 2023[32] Cash Flow and Financial Position - Vimeo's cash and cash equivalents increased to $325 million, with cash from operations up 25% year-over-year to $21 million[27] - Cash and cash equivalents increased to $324.781 million as of September 30, 2024, from $301.372 million at the end of 2023[30] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $46.057 million, up from $27.803 million in the same period in 2023[31] - Total assets as of September 30, 2024, were $642.977 million, up from $622.920 million at the end of 2023[30] - Total shareholders' equity increased to $409.411 million as of September 30, 2024, from $382.232 million at the end of 2023[30] Share Repurchase and Stock-Based Compensation - Vimeo repurchased 1.3 million shares of common stock in Q3 at an average cost of $3.83 per share, with $31 million remaining in the share repurchase authorization[28] - Stock-based compensation expense for the nine months ended September 30, 2024, was $23.620 million, compared to $5.429 million in the same period in 2023[29] - Stock-based compensation expense totaled $8.3 million in Q3 2024, up from $7.1 million in Q3 2023[34] OTT and Other Products - Vimeo's OTT business grew to 82% of Other revenue, up from 62% in Q3'22, with three new six-figure deals added in the quarter[17] - Other products include OTT video monetization, Magisto, Livestream, Wibbitz, and WIREWAX, expanding Vimeo's service portfolio[48] Operating Expenses and Profitability - Vimeo's GAAP and non-GAAP operating expenses were down 4% and 7% year-over-year, respectively, with quarterly gross profit remaining stable at $83 million[21][22] - Non-GAAP Operating Expenses decreased to $66.9 million in Q3 2024 from $71.9 million in Q3 2023[33] Guidance and Forward-Looking Statements - Q4 2024 revenue guidance is expected to be around $100 million[29] - Q4 2024 operating income guidance is approximately $2 million[29] - Q4 2024 adjusted EBITDA guidance is nearly $10 million, depending on investments[29] - Forward-looking statements highlight risks including economic conditions, regulatory changes, competition, and international expansion challenges[54] Subscribers and ARPU Calculation - Subscribers are counted per active subscription plan, with overlapping plans counted separately across Self-Serve, Enterprise, and Other categories[49] - Average Revenue per User (ARPU) is calculated by annualizing revenue and dividing by Average Subscribers[50] Bookings and Financial Metrics - Bookings represent fixed SaaS fees paid or committed, less refunds and chargebacks, measured at the end of the period[51] - Estimated dilution from securities ranges from 4.3% to 6.2% depending on stock price, with total diluted shares between 173.0M and 176.1M[52] Non-Operational Adjustments - Contingent consideration adjustments are excluded from performance assessment as they are non-operational and not indicative of current or future performance[45] - Restructuring costs, including severance and post-employment benefits, are considered non-recurring and excluded from performance evaluation[46] Market Position and User Base - Vimeo serves millions of users globally, with videos receiving billions of views monthly, positioning it as a leading video experience platform[55]

Wall Street analysts forecast that Vimeo, Inc. (VMEO) will report quarterly earnings of $0.01 per share in its upcoming release, pointing to a year-over-year decline of 80%. It is anticipated that revenues will amount to $99.48 million, exhibiting a decline of 6.4% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefra ...